1,191 Internet Banking Fraud Detected in 2009

KUALA LUMPUR, Dec 9 — There has been 1,191 cases of internet banking fraud detected throughout 2009 with the total loss from such cases amounting to RM 1 million.

Deputy Finance Minister Datuk Wira Chor Chee Heung told Parliament that Internet banking fraud often involves “phishing” activities which is a form of cyber-crime specialising in stealing private information through e-mails, fake websites or short messaging system or SMS.

Information taken will then be used to infiltrate the users’ account where cash will be transferred illegally into a third party account.

Replying to a question by Fong Kui Lun, the Bukit Bintang MP from DAP,. Chor said the government has introduced various measures to eradicate internet banking fraud cases such as the “two-factor authentication” for online banking transactions, and periodical monitoring to ensure banks obey the guidelines set by the central bank.

But analysts remain sceptical towards the monitoring system used by Malaysian banks, with many saying the technology used for fraud detection being outdated and ineffective.

Online banking services have doubled since its introduction in recent years with the number of mobile subscribers growing from 300,000 in 2007 to 500,000 in 2008, while its transaction value rose from RM21.2 million in 2007 to RM71.5 million in 2008.

And phishing remained the main threat for online banking transactions accounting for 94 per cent of the reported Internet banking fraud cases in 2008 according to a report released by Bank Negara last year.

Source: TheMalaysianInsider, http://www.themalaysianinsider.com/malaysia/article/1191-internet-banking-fraud-detected-in-2009-/

Comment:

Nowadays, the online banking services provided a convenience platform for people to do their money transaction and they no longer need to present in bank counter for any transactions. However, there is hidden threat under online banking services because we don’t know whether our personal information is secured or not. The article above shows that our account information and personal information is not 100% secured because its might be steal by third party via phishing activities. In my opinion, a phishing activity is used to steal other individual information without the permission from relevant party. Therefore, anyone who are involved in phishing activities could be charged under Computer Crime Act 1997 Section 3 (1) or (2) or (3): unauthorized access. The maximum fine under this section is liable to a maximum RM50, 000 or to 5 year imprisonment or both.